| PARENT COMPANY FINANCIALS. |
|
11. |
PARENT
COMPANY FINANCIALS. |
Restricted
Net Assets – At September 30, 2020, the Company had approximately $291,300,000 of net assets at its subsidiaries
that were not available to be transferred to Pacific Ethanol in the form of dividends, distributions, loans or advances due to
restrictions contained in the credit facilities of these subsidiaries.
Parent
company financial statements for the periods covered in this report are set forth below (in thousands):
| |
|
September 30,
2020 |
|
|
December 31,
2019 |
|
| Current Assets: |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
13,816 |
|
|
$ |
4,985 |
|
| Receivables from subsidiaries |
|
|
13,345 |
|
|
|
13,057 |
|
| Other current assets |
|
|
1,285 |
|
|
|
2,349 |
|
| Total current assets |
|
|
28,446 |
|
|
|
20,391 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
172 |
|
|
|
269 |
|
| Other Assets: |
|
|
|
|
|
|
|
|
| Investments in subsidiaries |
|
|
237,918 |
|
|
|
218,464 |
|
| Pacific Ethanol West plant receivable |
|
|
49,937 |
|
|
|
55,750 |
|
| Right of use operating lease assets, net |
|
|
3,053 |
|
|
|
3,253 |
|
| Other assets |
|
|
1,344 |
|
|
|
1,452 |
|
| Total other assets |
|
|
292,252 |
|
|
|
278,919 |
|
| Total Assets |
|
$ |
320,870 |
|
|
$ |
299,579 |
|
| Current Liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
$ |
2,577 |
|
|
$ |
5,907 |
|
| Accrued PE Op Co. purchase |
|
|
3,829 |
|
|
|
3,829 |
|
| Current portion of long-term debt |
|
|
20,000 |
|
|
|
10,000 |
|
| Other current liabilities |
|
|
668 |
|
|
|
659 |
|
| Total current liabilities |
|
|
27,074 |
|
|
|
20,395 |
|
| |
|
|
|
|
|
|
|
|
| Long-term debt, net of current portion |
|
|
45,743 |
|
|
|
56,110 |
|
| Other liabilities |
|
|
2,837 |
|
|
|
3,294 |
|
| Total Liabilities |
|
|
75,654 |
|
|
|
79,799 |
|
| Stockholders’ Equity: |
|
|
|
|
|
|
|
|
| Preferred stock |
|
|
1 |
|
|
|
1 |
|
| Common and non-voting common stock |
|
|
63 |
|
|
|
56 |
|
| Additional paid-in capital |
|
|
963,606 |
|
|
|
942,307 |
|
| Accumulated other comprehensive loss |
|
|
(2,370 |
) |
|
|
(2,370 |
) |
| Accumulated deficit |
|
|
(716,084 |
) |
|
|
(720,214 |
) |
| Total Pacific Ethanol, Inc. stockholders’ equity |
|
|
245,216 |
|
|
|
219,780 |
|
| Total Liabilities and Stockholders’ Equity |
|
$ |
320,870 |
|
|
$ |
299,579 |
|
| |
|
Three
Months Ended September
30, |
|
|
Nine
Months Ended September
30, |
|
| |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Management fees from subsidiaries |
|
$ |
2,802 |
|
|
$ |
3,330 |
|
|
$ |
8,928 |
|
|
$ |
9,660 |
|
| Selling, general and administrative expenses |
|
|
3,305 |
|
|
|
3,827 |
|
|
|
12,990 |
|
|
|
11,374 |
|
| Loss from operations |
|
|
(503 |
) |
|
|
(497 |
) |
|
|
(4,062 |
) |
|
|
(1,714 |
) |
| Interest income from subsidiaries |
|
|
1,007 |
|
|
|
1,145 |
|
|
|
3,053 |
|
|
|
3,486 |
|
| Interest expense |
|
|
(2,497 |
) |
|
|
(2,276 |
) |
|
|
(7,840 |
) |
|
|
(7,039 |
) |
| Fair value adjustments |
|
|
(6,856 |
) |
|
|
— |
|
|
|
(7,497 |
) |
|
|
— |
|
| Other expense |
|
|
(41 |
) |
|
|
(4 |
) |
|
|
(203 |
) |
|
|
(86 |
) |
| Loss before benefit for income taxes |
|
|
(8,890 |
) |
|
|
(1,632 |
) |
|
|
(16,549 |
) |
|
|
(5,353 |
) |
| Benefit for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Loss before benefit for income taxes |
|
|
(8,890 |
) |
|
|
(1,632 |
) |
|
|
(16,549 |
) |
|
|
(5,353 |
) |
| Equity in income (losses) of subsidiaries |
|
|
24,105 |
|
|
|
(25,694 |
) |
|
|
21,628 |
|
|
|
(42,509 |
) |
| Consolidated net income (loss) |
|
$ |
15,215 |
|
|
$ |
(27,326 |
) |
|
$ |
5,079 |
|
|
$ |
(47,862 |
) |
| |
|
For
the Nine Months Ended
September 30, |
|
| |
|
2020 |
|
|
2019 |
|
| Operating Activities: |
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
5,079 |
|
|
$ |
(47,862 |
) |
| Adjustments to reconcile net income (loss) to cash used in operating activities: |
|
|
|
|
|
|
|
|
| Equity in (income) losses of subsidiaries |
|
|
(21,628 |
) |
|
|
42,509 |
|
| Fair value adjustments |
|
|
7,497 |
|
|
|
— |
|
| Depreciation |
|
|
97 |
|
|
|
227 |
|
| Amortization of debt discounts |
|
|
(173 |
) |
|
|
539 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
(288 |
) |
|
|
(114 |
) |
| Other assets |
|
|
1,184 |
|
|
|
173 |
|
| Accounts payable and accrued expenses |
|
|
(19 |
) |
|
|
1,950 |
|
| Accounts payable with subsidiaries |
|
|
— |
|
|
|
(502 |
) |
| Net cash used in operating activities |
|
$ |
(8,251 |
) |
|
$ |
(3,080 |
) |
| Investing Activities: |
|
|
|
|
|
|
|
|
| Additions to property and equipment |
|
$ |
— |
|
|
$ |
(13 |
) |
| Net cash used in investing activities |
|
$ |
— |
|
|
$ |
(13 |
) |
| Financing Activities: |
|
|
|
|
|
|
|
|
| Proceeds from issuances of common stock |
|
$ |
5,296 |
|
|
$ |
3,670 |
|
| Proceeds from warrant exercises |
|
|
5,500 |
|
|
|
— |
|
| Proceeds from long-term debt |
|
|
5,973 |
|
|
|
— |
|
| Proceeds from Pacific Ethanol West |
|
|
5,813 |
|
|
|
3,016 |
|
| Payments on senior notes |
|
|
(5,500 |
) |
|
|
(3,748 |
) |
| Preferred stock dividend payments |
|
|
— |
|
|
|
(946 |
) |
| Net cash provided by financing activities |
|
$ |
17,082 |
|
|
$ |
1,992 |
|
| Net increase (decrease) in cash and cash equivalents |
|
|
8,831 |
|
|
|
(1,101 |
) |
| Cash and cash equivalents at beginning of period |
|
|
4,985 |
|
|
|
6,759 |
|
| Cash and cash equivalents at end of period |
|
$ |
13,816 |
|
|
$ |
5,658 |
|
|